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Rothwell, David W.

Building financial knowledge is not enough financial self-efficacy as a mediator in the financial capability of low-income families / [electronic resource] : David W. Rothwell, Mohammad N. Khan & Katrina Cherney. - pp. 368-388.

Policymakers in many countries have taken an interest in population-level financial capability. Limited empirical work has examined how constructs that makeup financial capability relate and how they function for individuals with low incomes. Using a national sample of low-income Canadians, we investigate relationships between financial knowledge, financial self-efficacy, and savings outcomes. Overall, we find that financial self-efficacy fully mediated the relationship between objective financial knowledge and postsecondary-education saving. The association between objective financial knowledge and retirement saving and emergency saving passed through financial self-efficacy. Efforts to promote financial capability need to focus on more than objective financial knowledge.




Mode of access: Internet.

Subjects--Index Terms: Assets, Canada, financial capability, financial self-efficacy, welfare policies